China Developer GT Land Said to Plan $500 Million Hong Kong IPO

by Fox HuVinicywanchi Chan

(Bloomberg) -- GT Land Holdings Ltd., a commercial developer in southern China, plans to seek about $500 million from an initial public offering in Hong Kong, people with knowledge of the matter said.
The company, based in the provincial capital of Guangzhou, aims to complete the sale as early as this year, according to the people. It has yet to file a listing application with the Hong Kong stock exchange, they said, asking not to be identified because the information is private.
GT Land is seeking funds after some other southern Chinese developers had project sales halted as the government probes dealings with local officials. Kaisa Group Holdings Ltd., based in Shenzhen, missed a $23 million interest payment in January while China Yuanbang Property Holdings Ltd. said the same month its chairman is being investigated by Chinese authorities and has resigned.

Bank of America Corp. and Macquarie Group Ltd. are working on GT Land’s share sale, two of the people said. The company didn’t answer several calls to
its Guangzhou headquarters seeking comment.
GT Land Plaza, the company’s flagship property in Guangzhou, is a mixed-use commercial complex that includes a hotel managed by Dubai’s Jumeirah Group LLC. The project’s 45-story grade-A office tower houses companies including General Electric Co., Haitong Securities Co. and Ernst & Young LLP, according to marketing materials posted on its website.
Property IPOs in Hong Kong raised $5.2 billion last year, compared to $1.1 billion in 2013, according to data compiled by Bloomberg. Dalian Wanda Commercial Properties Co., the nation’s biggest commercial developer, completed a $4 billion share sale after China unexpectedly cut interest rates in November to spur growth. The company has fallen 1.5 percent since its Dec. 23 debut.
To contact the reporters on this story: Fox Hu in Hong Kong at fhu7@bloomberg.net; Vinicy Chan in Hong Kong at vchan91@bloomberg.net